Grupo Mexico, which runs mines in Mexico, Peru and the United States as well as Mexico's largest railroad, wants to expand its transportation business and has been buying shares in GAP since 2009.
The mining company owns 28.8 percent of the company's B shares, according to a Thursday filing with the U.S. Securities and Exchange Commission. Grupo Mexico said in June it wanted to buy more than that, pending regulatory approval.
The offer triggered a law obligating Grupo Mexico to bid for all of GAP . The miner said it would reconsider if it did not get more than 50 percent.
At 50 pesos per share, the amount Grupo Mexico is offering, it would cost $1.37 billion to buy the remaining B shares available on the market.
GAP also has shares, 15 percent of the company, that are not publicly traded, and are held by controlling partners. Grupo Mexico has not stated its intentions for these shares.
Before Grupo Mexico's bid can move forward, the miner must deal with GAP's bylaws, which prevent any non-controlling shareholder from holding more than 10 percent.
Grupo Mexico is suing GAP to change those rules and GAP has shot back with an appeal to stop the takeover, potentially tying up the process for months. (Reuters)
